Is The Hobbit Coming or Going?

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Update: A decision has been made on Middle-earth's location.

By Jim Vejvoda

Update: Well, it looks like The Hobbit is staying put. Variety reports that New Zealand Prime Minister John Key has announced that the two films will be made there. "Making the two Hobbit movies here will not only safeguard work for thousands of New Zealanders, but it will also follow the success of the Lord of the Rings trilogy in once again promoting NZ on the world stage," he said at a news conference. Reps for Warner Bros., New Line and MGM have yet to comment on the matter.

One wonders if President Obama is going to get mixed up in The Avengers shoot next.

According to The New Zealand Herald, no decision has yet been made about whether The Hobbit would remain in New Zealand or not. The prime minister said a decision could be reached within the next few days or by week's end at the latest, but that right now the film's chances of staying in New Zealand were no greater than 50-50.

"They're not coming here with a ransom note or trying to put a gun to our heads. The commercial reality is that the actions of the unions have encouraged them to look at other countries, and other countries have better deals at the moment," the Herald later quoted Key as saying.

The prime minister said his government is mulling additional tax breaks for the film, but won't match the bigger incentives offered by countries such as Ireland, France and Hungary. Key said, "What I can't rule out is [that] we won't look at some things at the margins that might make the deal slightly better."

Legal experts claim only a change in New Zealand's labor laws could ultimately give Warners the sort of guarantee they seek in regards to possible future industrial actions (i.e., union issues).